Kukyoung GNM Vows “Full Commitment to Restoring Corporate Value”… Expanding Shareholder Returns and Fostering New Businesses

Kukyoung GNM, a Korean specialist in glass processing, has announced a plan to enhance corporate value centered on expanding shareholder return policies and fostering future growth businesses. This move comes in response to the recent decline in its stock price and concerns about being designated as a cautionary issue for investors.

On July 15, Kukyoung GNM posted an open letter to shareholders on its official website, outlining shareholder-friendly policies and mid- to long-term growth strategies aimed at restoring market confidence.

The company emphasized that the recent drop in stock price is unrelated to any weakening of its inherent competitiveness or growth potential. Currently, its price-to-book ratio (PBR) is below 0.3 times. According to the company, considering the technological expertise, brand value, and asset value it has accumulated over the past 60 years, its corporate value is significantly undervalued.

Kukyoung GNM explained that it is a leading player in Korea's architectural and industrial glass market. The company has established its business foundation by participating in large-scale projects such as the Seoul Station Complex Development, the Pangyo NCS Project, the Seongsu-dong K-Project, as well as key semiconductor clusters, drawing on competitive technology and quality developed over three generations.

Building upon its competitiveness in specialty insulating glass, the company is also focusing on expanding contracts for large commercial building projects. Kukyoung GNM stated that it is concentrating its business and technical capabilities on securing orders for major projects, including the Suseo Station Complex Development, Jamsil MICE Complex Development, Bank of Korea Yeoksam-dong Reconstruction, Kiwoom Securities Office Building, and the Cheongju Semiconductor Cluster.

The company is also actively pursuing business diversification. Kukyoung GNM is expanding into high-value-added sectors such as heat-shielding fire-resistant glass, bulletproof glass, and heated glass, as well as building-integrated photovoltaics (BIPV), defense-specialized glass, and electromagnetic shielding glass.

In particular, the building-integrated photovolatics (BIPV) business developed in partnership with Australia-based ClearVue has entered the final stage of obtaining Korean certification for design and construction, with the company expecting tangible results soon.

In the defense sector, Kukyoung GNM is jointly developing a cockpit windscreen for Light Armed Helicopters (LAH) together with the Defense Development Agency. This technology is intended to protect pilots from bird strikes and icing conditions. Once development is complete, the company plans to enter the defense market with this product.

Additionally, to address signal-blocking issues inside buildings under 5th and 6th generation (5G/6G) mobile communication environments, Kukyoung GNM is co-developing specialized insulating glass with a wireless signal technology company that holds the world's first related patent.

The company acknowledged that its current market capitalization could lead to being designated as a cautionary issue if it remains below KRW 20 billion for 30 consecutive trading days. Kukyoung GNM admitted that past communication with shareholders and promotional activities were insufficient, and pledged to implement improvements proactively.

Kukyoung GNM plans to promote corporate value by establishing a new public relations and IR department, enhancing investor communications, implementing active dividend policies, repurchasing and retiring treasury shares, encouraging responsible stock purchases by major shareholders, and considering free share capital increases, among other shareholder return measures.

A Kukyoung GNM representative stated, "We are recognized by Korea's major construction companies as a key partner because of our technical prowess and construction capability. We will continue to strengthen our future competitiveness in the glass industry, communicate actively with shareholders to rebuild market trust, and raise our corporate value."

Kukyoung GNM is determined to restore its undervalued corporate value and reinforce its foundation for mid- to long-term growth by expanding shareholder return, active IR, and fostering new high-value-added specialty glass businesses.

This content was produced with the assistance of AI translation services.